Teucrium Investment Advisors is set to debut the first-ever XRP exchange-traded fund (ETF) in the U.S., offering a 2x leveraged exposure to the Ripple cryptocurrency.
The Teucrium 2x Long Daily XRP ETF (XXRP) will begin trading on the NYSE Arca on Tuesday, providing investors with double the daily return of XRP. This launch comes ahead of the approval of any standard “spot” XRP ETF, which is still under review by the U.S. Securities and Exchange Commission (SEC).
“This is quite unusual—possibly even a first—where the first ETF for a new asset is leveraged,” said Eric Balchunas, a Bloomberg Intelligence analyst, in an X post. “Spot XRP is still waiting for approval, but our odds are looking good.”
Normally, ETFs that track new assets like cryptocurrencies begin with simpler, unleveraged “spot” funds that directly hold the underlying asset. Leveraged ETFs, which amplify returns through borrowing, are typically introduced later.
Teucrium’s leveraged fund will charge a management fee of 1.85%, but the firm warned that XRP’s inherent price volatility, coupled with its decreasing usage on the Ripple network, could challenge the ETF’s performance. This aligns with wider concerns regarding XRP’s long-term adoption and market stability.
Ripple’s Legal Progress Boosts XRP ETF Prospects
Teucrium’s launch comes at a time when several other firms are vying to introduce their own spot XRP ETFs, which are still under SEC review. Industry giants such as WisdomTree, Bitwise, 21Shares, Canary Capital, and Franklin Templeton have all filed proposals to offer unleveraged XRP ETFs to the market.
The SEC has acknowledged these applications, and decisions on whether to approve them are expected in the coming months, potentially opening the door for more XRP investment vehicles.
In the meantime, XRP has seen a 6.5% increase in the last 24 hours, reflecting broader positive market momentum.
